Cheap remortgages will be disappearing along with the holiday cheer.  The holidays have been coming upon us for the last few months and with it there have been cheap remortgages.  In many cases homeowners may have remortgaged to help assist in funding a holiday vacation or the holiday gift list.  Cheap borrowing has been found with remortgages more so than with personal loans as of late.  Now the holidays are soon to be winding down as the New Year approaches and with it cheap remortgages will disappear.

Cheap remortgages had become the norm and homeowners were used to seeing the low interest rates offered from lenders.  The trend has been around for so long that many homeowners have failed to keep track of the news and keep abreast of the changes in the mortgage lending market.  They will be surprised to find changes in the interest rates despite the Bank regulators choosing to keep the standard base interest rate untouched.  Already in the last few weeks lenders have begun to pull their lowest rates and replace them with slightly higher interest rates.

The reason lenders are pulling their lowest interest rates is due to the newly perceived risk involved in lending.  The eurozone continues to have economic troubles and there has been a threat of a second recession in the UK.  In the face of such economic woes lenders see more risk in lending to borrowers and with that risk comes higher interest rate offerings on their loans including remortgages.  As the year ends and the holidays pass behind us so may well pass the cheap remortgages that have been enjoyed by remortgaging homeowners in 2011.